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Reasons why you should NOT trade cryptocurrencies

drumfool
Dec 31 2017 at 10:59
1 posts
I would like to make some key points:
1. Plenty of crytpocurrencies have a limited supply, fiat currencies have an unlimited supply and consequently continue to depreciate.
2. Crytpocurrencies don't have tax demand, but essentially tax demand is the only thing supporting fiat (that continually depreciates) as fiat is the only 'legal' tender for paying taxes.
3. Some say cryptocurrency is nothing but digital 0s and 1s, but so is most fiat for years upon years now.
4. Cryptocurrencies are more liquid than stocks, bonds, and similar assets. To the best of my knowledge you can't get those funds today if you choose to liquidate, with crypto you can get it today.
5. Some cryptocurrencies may go bust, but so do companies, corporations, banks, and governments.
6. Cryptocurrencies are transactable assets. People can and do make purchases with crypto, they cannot with stocks or bonds.
7. To the best of my knowledge, cryptocurrencies present the fastest and cheapest way to transfer funds globally.

Finally, its my opinion that silver and gold are better MONEY (not currency) than fiat AND cryptocurrency.

johndoe2016
Dec 31 2017 at 11:34
58 posts
Drumfool, agree.

Also the news about max leverage in the EU being 30 for forex, will stop a lot of forex trading and shift it to crypto currencies.

BluePanther (BluePanther)
Dec 31 2017 at 15:51
1354 posts
@drumfool @johndoe2016
Please stick to FACTS and not CONJECTURE: please provide sources / links to any statements you make.
“Opinions are like assholes, everyone has one but they think each others stink.” - Simone Elkeles

Thank you both for your input.
A friendly reminder: this thread is titled 'Reasons why you should NOT trade cryptocurrencies'.
There is a thread supporting cryptocurrencies by Leo23.

BluePanther (BluePanther)
Dec 31 2017 at 16:45
1354 posts
What to watch out for

Cryptocurrencies are not without their pitfalls and you will need to be careful when handling your digital currency.

Research

Before jumping into cryptocurrencies, do your research. No single guide will ever be able to cover everything you need to know about all cryptocurrencies. There are too many to cover in one document and each cryptocoin brings its own pros and cons. Additionally, you will need to understand how exchanges and wallets work. So before you do anything, make sure you read as many guides as you can, find reviews and try everything out with small, disposable amounts of money.

Stay safe

There is no safety net when working with cryptocurrencies. There are no police to make a report to if your money gets stolen; there is no bank to protect your money. With the freedom to do whatever you want with your own money anonymously comes a lot of responsibility. Here are a few tips:
> Before you send cryptocoins to someone, always double check their wallet address.
> Never hand over products or services before the transaction on the blockchain is verified. This might take up to ten minutes on some blockchains.
> Always keep the computer on which your wallet is installed safe and clean from viruses and malware.
> Never lose your wallet password. You might not be able to get it back and every cryptocoin you own will be lost.

Unpredictable value

Bitcoin and cryptocurrencies in general often suffer from sudden dips in value. Whenever purchasing cryptocoins – or investing in them – always be aware that the value of your holdings can fall.

Of course this could work in your favour if it goes the other way. Always be aware that the cryptocurrency market is extremely volatile and past performance is not indicative of future performance.


https://www.finder.com.au/cryptocurrency

BluePanther (BluePanther)
Dec 31 2017 at 17:38
1354 posts
Watch Out for These Cryptocurrency Scams (December 20, 2017)
https://www.entrepreneur.com/article/306347


Nearly 150 Strains of Malware Are After Your Bitcoins (Feb 27, 2014)
https://www.coindesk.com/nearly-150-strains-malware-bitcoins/


Bitcoin Gold Wallet Scam Nets $3 Million in Illicit Earnings (Nov 22, 2017)
https://www.coindesk.com/bitcoin-gold-wallet-scam-nets-3-million-illicit-earnings/


Apple Removes Fake MyEtherWallet Which Hit No. 3 on App Store (DEC 13, 2017)
https://cointelegraph.com/news/apple-removes-fake-myetherwallet-which-hit-no-3-on-app-store


SegWit2x Version 2.0 - a Farce? (Jan 1, 2018)
https://cointelegraph.com/news/segwit2x-version-20-a-farce


$225 Million Lost As Cryptocurrency Investors Get Hooked by Phishing Scams (AUG 26, 2017)
https://cointelegraph.com/news/225-million-lost-as-cryptocurrency-investors-get-hooked-by-phishing-scams


South Korean Government Concerned With Scams in Bitcoin Market, Fake Exchanges (DEC 25, 2017)
https://cointelegraph.com/news/south-korean-government-concerned-with-scams-in-bitcoin-market-fake-exchanges


North Korea Accused of Hacking South Korean Bitcoin Exchange Youbit (DEC 21, 2017)
https://cointelegraph.com/news/north-korea-accused-of-hacking-south-korean-bitcoin-exchange-youbit


South Korea: Five Local Bitcoin Exchanges Fail Security Test, Hacked With ‘Basic Tools’ (DEC 21, 2017)
https://cointelegraph.com/news/south-korea-five-local-bitcoin-exchanges-fail-security-test-hacked-with-basic-tools


Major Wallet Vulnerability Revealed As User Barely Reclaims 9 BTC (DEC 04, 2017)
https://cointelegraph.com/news/major-wallet-vulnerability-revealed-as-user-barely-reclaims-9-btc


Confido ICO Raises $340K, Vanishes (NOV 22, 2017)
https://cointelegraph.com/news/confido-ico-raises-340k-vanishes


Breaking: Tether Allegedly Hacked For $30 Mln (NOV 21, 2017)
https://cointelegraph.com/news/breaking-tether-allegedly-hacked-for-30-mln


Major Risk For Mobile Android Wallet Users (NOV 20, 2017)
https://cointelegraph.com/news/major-risk-for-mobile-android-wallet-users


According to Key European Regulator, ICOs Could be Derivative Activities (NOV 16, 2017)
https://cointelegraph.com/news/according-to-key-european-regulator-icos-could-be-derivative-activities


Buyer Beware: Cryptocurrency ‘Pump and Dump’ Schemes Coordinated In Telegram (NOV 15, 2017)
https://cointelegraph.com/news/buyer-beware-cryptocurrency-pump-and-dump-schemes-coordinated-in-telegram


Fake ICOs, Common Crypto Scams and How to Avoid Them (NOV 03, 2017)
https://cointelegraph.com/news/fake-icos-common-crypto-scams-and-how-to-avoid-them


Press Release - SEC Emergency Action Halts ICO Scam FOR IMMEDIATE RELEASE 2017-219
https://www.sec.gov/news/press-release/2017-219


US Government to Sell Off $10 Million in Seized Bitcoin and Bitcoin Cash (Dec 15, 2017)
https://www.coindesk.com/us-government-to-sell-off-10-million-in-seized-bitcoin-and-bitcoin-cash/


Prosecutors File Charges in Alleged $250 Million Crypto Mining Fraud (Dec 21, 2017)
https://www.coindesk.com/prosecutors-file-charges-alleged-250-million-crypto-mining-fraud/





BluePanther (BluePanther)
Dec 31 2017 at 17:54
1354 posts
Why Bitcoin Is the MySpace of Cryptocurrencies, But the Blockchain Is Here to Stay (November 22, 2017)
Why blockchain, not bitcoin, is the real treasure of cryptocurrency.
https://www.entrepreneur.com/article/304134

BluePanther (BluePanther)
Jan 01 2018 at 08:33
1354 posts
BluePanther (BluePanther)
Jan 01 2018 at 09:51
1354 posts
FBI implicates several FX brokerages in BTC-e investigation. Here is why cryptocurrency is a sure fire way to destroy your brokerage (December 27, 2017)
https://financefeeds.com/fbi-implicates-several-fx-brokerages-btc-e-investigation-cryptocurrency-sure-fire-way-destroy-brokerage/


ICO = Insidious CON offering (October 18, 2017)
https://financefeeds.com/ico-insidious-con-offering/

BluePanther (BluePanther)
Jan 01 2018 at 09:53
1354 posts
Some brokers lost a fortune on crypto currency trading yet have remained silent. Our advice: Stay away (December 19, 2017)

'...Brokerages offering unrestricted Bitcoin trading are suffering tremendous losses which in some cases have caused large firms to stop paying their affiliates. The sooner this ‘crypto mania’ is over, the better for everyone, brokers, providers and traders alike.'

https://financefeeds.com/some-brokers-lost-a-fortune-on-crypto-currency-trading-yet-have-remained-silent-our-advice-stay-away/


'Airware – sarcastic software industry terminology used in the late 1990s for a non-existent product – could be an appropriate label for the latest buzzword that is proliferating the internet, that being ICO.'

Binary options ‘ban’ is pure hysteria. The bandits will carry on as normal (October 24, 2017)
https://financefeeds.com/binary-options-ban-pure-hysteria-bandits-will-carry-normal/


'Israel Securities Authority chairman Professor Shmuel Hauser states that binary options fraudsters are moving to cryptocurrency and ICO fraud, highlighting FinanceFeeds’ perspective on this matter. Here is the full insight'

'This is a perfect vehicle which binary options fraudsters can adapt the very same binary options platforms and use the same marketing/hard sales model to gain deposits as they did with binary options, except with even less recourse for investors, because, unlike binary options, they cannot make a claim that they were wrongfully sold a trade on a financial instrument, as the item they are investing in does not exist, neither does the currency to buy it – which is known by the investor from the outset, hence the scammers can just simply steal it, and they say that the item never came to fruition and because cryptocurrency is distributed, there is no central system to intervene.'

We were right: Israeli official Professor Shmuel Hauser shares our view on fraudulent ICO and crypto mania (November 15, 2017)
https://financefeeds.com/right-israeli-official-professor-shmuel-hauser-shares-view-fraudulent-ico-crypto-mania/


'Since the failure of the State of Israel to have addressed the massive and largely fraudulent binary options underworld that has permeated the public arena and created tremendous discourse over recent years, the United States has begun to pick up the baton.'

SpotOption helped fraudster Lee Elbaz to make clients lose money, witnesses tell FBI (September 27, 2017)
https://financefeeds.com/spotoption-helped-fraudster-lee-elbaz-to-make-clients-lose-money-witnesses-tell-fbi/

BluePanther (BluePanther)
Jan 01 2018 at 13:22
1354 posts
Britain’s FCA takes a very dim view of cryptocurrency CFDs and views them as insidious as binary options – which is about right, given that most of the ICO and crypto platforms are being hawked by the very same fraudsters who peddled binary options

Exactly as FinanceFeeds predicted, FCA lumps cryptocurrency investment into same category as binary options fraud
https://financefeeds.com/pr/exactly-financefeeds-predicted-fca-lumps-cryptocurrency-investment-category-binary-options-fraud/

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